India, China Reopen Trade Dialogue as New Delhi Pushes for Market Access and Supply Stability

• India and China have begun fresh trade talks after ministerial discussions at the BRICS Summit.

• New Delhi wants to address its trade deficit, market access barriers and supply-chain concerns.

• Bilateral economic engagement had slowed after the 2020 clashes.

• The India-New Zealand FTA is expected to take effect in October.

• India is also advancing trade talks with Canada and the United States.

India and China have begun fresh discussions aimed at addressing New Delhi’s key trade and economic concerns, following a meeting between Commerce and Industry Minister Piyush Goyal and Chinese Commerce Minister Wang Wentao on the sidelines of the BRICS Summit last week.

Commerce Secretary Rajesh Agrawal said on Tuesday that the meeting marked an initial step in restarting engagement on several unresolved trade issues between the two countries. Further discussions are expected over the coming weeks, with both sides likely to work toward a mutually acceptable framework.

The ministerial meeting followed bilateral talks between Prime Minister Narendra Modi and Chinese President Xi Jinping, during which both leaders stressed the importance of responding to each other’s concerns. These include structural trade imbalances, supply-chain disruptions and the need for meaningful and predictable market access.

Agrawal said both countries are now trying to understand each other’s positions on these matters. He described the recent meeting as the beginning of a process, with additional rounds of discussions expected to carry the engagement forward.

According to him, both sides will gradually need to identify their priorities and respond to concerns raised by the other side. This process, he said, would help create the basis for a more constructive trade dialogue.

Agrawal also indicated that China has shown willingness to address India’s concerns in a balanced manner. India, he said, is also open to continued engagement to find solutions to trade-related problems, particularly those involving supply chains and structural imbalances.

New Delhi’s main concerns include its widening trade deficit with China, limited access for Indian goods in the Chinese market and uncertainty in the supply of critical raw materials and industrial inputs. Many of these materials are important for manufacturing, electronics, pharmaceuticals, renewable energy and other supply-chain-linked sectors.

India has repeatedly emphasised the need for predictable access to essential imports from China, while also seeking better opportunities for Indian exports. The imbalance in bilateral trade has remained a central issue in economic discussions between the two countries.

Economic engagement between India and China weakened significantly after the Galwan clashes in 2020. Several diplomatic and economic channels were disrupted in the aftermath, and bilateral trade policy discussions slowed sharply.

However, contacts began to improve after the October 2024 border patrolling and disengagement arrangements. Since then, high-level political and trade engagement has gradually resumed, with recent meetings around the BRICS Summit in New Delhi adding momentum to the process.

The latest discussions suggest that both sides may be willing to rebuild some of the economic mechanisms that had stalled in recent years. However, any progress is expected to depend on how effectively the two countries address each other’s core concerns.

India-New Zealand FTA Expected in October

Agrawal also said that the India-New Zealand free trade agreement is expected to become operational in the second half of October.

The agreement was concluded in December and signed in April. October 19 has been reported as the likely date for its entry into force.

The FTA is expected to provide a new framework for trade between the two countries, expanding opportunities for businesses and strengthening economic ties.

Canada CEPA Talks Move Ahead Under Tight Deadline

India and Canada are also holding the fourth round of negotiations for a Comprehensive Economic Partnership Agreement in New Delhi from September 14 to 19.

A 48-member Canadian negotiating team is participating in the talks. Discussions cover all chapters currently on the table, and two chapters have already been concluded, Agrawal said.

He noted that both sides are aiming for strong progress in the current round because the negotiations are operating on a tight timeline. India and Canada are working to conclude the agreement by the end of this year.

The terms of reference for the CEPA negotiations were signed in March, setting the framework for the ongoing talks.

The renewed trade engagement comes after a difficult period in India-Canada relations, but both sides appear to be moving ahead on the economic track with a focus on concluding the agreement within the proposed schedule.

Goyal Likely to Discuss Trade Issues With US Officials

Agrawal said Commerce and Industry Minister Piyush Goyal is also expected to hold bilateral discussions with US officials during his visit to the United States for the G20 Trade Ministers’ meeting.

He said that whenever the bilateral talks take place, all trade issues between India and the US are expected to be discussed.

India and the United States are currently working to finalise an interim trade agreement. This is expected to serve as a step toward a broader Bilateral Trade Agreement.

The India-US trade agenda includes market access, tariff issues, supply-chain cooperation and broader economic partnership concerns. Both countries have been working to deepen commercial ties while managing sector-specific differences.

The latest developments show that India is simultaneously engaging with several major trade partners. With China, the focus is on reducing imbalances and improving supply predictability. With New Zealand, India is preparing to operationalise a concluded FTA.

With Canada, negotiations are moving forward under a tight deadline. With the United States, talks are expected to continue toward an interim arrangement and eventually a wider trade pact.

For New Delhi, the broader strategy appears to be centred on improving market access, strengthening supply-chain resilience and expanding trade partnerships across key economies.